(Washington, DC - March 4, 2014) - A Chinese powersports company and its related U.S. distributor have agreed to recall and replace fuel tanks that will better control gasoline vapors in approximately 1,000 vehicles and take other steps to control pollution stemming from the illegal import of over 12,000 recreational vehicles and highway motorcycles. These motor vehicles were manufactured in China and imported without the required certification indicating that emissions would meet federal standards.

Settlement Resources

Overview of Companies

CFMOTO Powersports, Inc. is a Minnesota corporation that holds certificates of conformity and that imports highway motorcycles and recreational vehicles manufactured by Zhejiang CFMoto Power Co., Ltd. and ChunFeng Holding Group Co. Ltd., both Chinese companies. CFMOTO America, Inc. is a now-dissolved Michigan corporation that was the predecessor to CFMOTO Powersports, Inc.

Violations

Between March 2007 and August 2013, CFMOTO imported over 12,000 highway motorcycles and recreational vehicles into the United States that were not certified by the EPA, as required by the Clean Air Act, to meet applicable federal emission standards, including approximately 1,400 vehicles that were imported without proper emission control information labels.

Non-Penalty Conditions

The settlement requires CFMOTO to institute a Recall and Fuel Tank Replacement Program to prevent any excess emissions from the uncertified fuel tanks. Furthermore, the settlement requires CFMOTO to correct the emission control labels for 340 of the vehicles with nonconforming labels that are still within CFMOTO's control.

Health Effects and Environmental Benefits

Highway motorcycles and recreational vehicles emit carbon monoxide, as well as hydrocarbons and nitrogen oxides that contribute to the formation of ground-level ozone.

Nitrogen Oxides – Nitrogen oxides can cause or contribute to a variety of health problems and adverse environmental impacts, such as ground-level ozone, acid rain, global warming, water quality deterioration, and visual impairment. Affected populations include children and people with lung diseases such as asthma. Exposure to these conditions can cause damage to lung tissue for people who work or exercise outside.

Ground-level ozone – Ground-level ozone is formed by reactions involving HC and NOx in the presence of sunlight. Breathing ozone can trigger a variety of health problems, including chest pain, coughing, throat irritation, and congestion. It also can worsen bronchitis, emphysema, and asthma. Ground-level ozone damages vegetation and ecosystems as well. In the United States, ozone is responsible for an estimated $500 million in reduced crop production each year.

Carbon Monoxide – Carbon monoxide is a colorless, odorless gas that is formed when carbon in fuel is not burned completely. It is a component of motor vehicle exhaust, which contributes about 56 percent of all carbon monoxide emissions nationwide. Carbon monoxide can cause harmful health effects by reducing oxygen delivery to the body's organs (like the heart and brain) and tissues.